JAKARTA: Chinese firms plan to invest $8.6 billion on aluminum and iron smelter projects in Indonesia, the industry minister said on Thursday, in a bid to guarantee supplies of metals under threat from a ban on exports of mineral ores from 2014.

Indonesia, a major supplier of metal ores to top consumer China, is trying to drive investment in the metal processing sector by imposing a 20 percent tax on raw ore exports ahead of an outright ban.

China is the largest consumer and producer of aluminum and Indonesia supplied almost 80 percent of the 25 million tonnes of bauxite it bought in the first half of the year. However, imports from Indonesia slumped in June in July, after the tax was imposed.

The planned investment appears to be the biggest to date by Chinese firms in Indonesia's metal processing sector, and if realized, would a success for the government's policy.

"The projects are forward moves in the metal refining industry in Indonesia," Industry Minister Mohamad Hidayat said after a signing ceremony attended by representatives of the three Chinese firms.

Oriental Mining is an established steel producer but Chinese industry sources said they were not familiar with the other two companies.

SECURING SUPPLIES

Hidayat said Shuang Zhong Li planned to invest $7.1 billion to build an alumina refinery with a total production capacity of 1.8 million tonnes per year and an aluminum smelter with a total production capacity of 600,000 tonnes of aluminum ingot per year and a 1,250 MW power plant in West Kalimantan or Riau.

The other two firms plan to invest $1.5 billion on a direct reduced iron (DRI) plant with a total production capacity of 6 million tonnes per year in West Java, Hidayat added.

Both projects are to be carried out in stages, with the first completed by 2015 and the last by 2020.

Under the new Indonesian regulations, firms now have to submit plans to either build smelters or to process their ore locally, before being allowed to export raw ore from Indonesia.

Analysts said the decision to build smelters in Indonesia made sense for Chinese metal producers.

"Effectively they are losing a source of bauxite imports so you can replace it either by importing alumina from Australia, boosting bauxite imports from Guinea, or you can look at building some refineries in Indonesia," said Ivan Szpakowski, a metals analyst at Credit Suisse.

Chinese imports of bauxite from Indonesia fell 93 percent in July, while imports from Australia doubled, Chinese trade data shows. Chinese imports of iron ore in July fell 68 percent from Indonesia, and more than doubled from countries such as Chile, Mongolia and New Zealand.

Heng Kun, a senior analyst at China-based brokerage Essence Securities and who has been following the aluminum sector for years, expects more Chinese alumina producers to build smelters in Indonesia.

But like other analysts, Heng was cautious about the scale of these investments, especially in the current economic climate and as China's own growth slows.

"They have agreed the investment for now," he said, referring to the recent projects. "But how much the Chinese investor will put into these projects is hard to predict. They can say that they are having problems and cut the investment."

Earlier this month, industry sources said three of China's biggest alumina producers were planning to invest into bauxite mines and refineries in Indonesia.

One of these firms, Bosai Minerals Group Co Ltd, said on Thursday it had shortlisted an Indonesian partner for a $1 billion alumina plant on Bintan island which it expects to start production of 2 million tonnes per year by the start of 2015.

"We do not rule out building a smelting facility in Indonesia in the future. This alumina plant is the first step," said a Bosai Minerals spokesman.

The Indonesian Chamber of Commerce has said the country needs around 30 smelters to process various metals as part of a government drive to turn the country from an exporter of raw commodities into a manufacturing nation. - Reuters

KUALA LUMPUR: Maxis Bhd reported earnings of RM464mil in the second quarter ended June 30, 2012 compared with RM551mil a year after it wrote off certain network assets of RM125mil.

It said on Thursday that revenue rose 2.7% to RM2.216bil from RM2.158bil due to its mobile services. Earnings per share were 6.20 sen compared with 7.3 sen. It rewarded shareholders with a second interim single-tier tax-exempt dividend of 8.0 sen per ordinary share.

For the first half, its earnings were RM1.036bil compared with RM1.090bil. Revenue was 3.5% higher at RM4.445bil compared with RM4.291bil.

Maxis said for the first half ended June 30, 2012, the group recorded a 4% or RM154 million increase in revenues over the preceding year mainly contributed by the higher revenue from mobile services segment.

Group EBITDA grew 2% or RM43mil on the back of higher revenue offset by higher direct expenses. Hence, margin dipped 0.8 percentage point ending the period at 50.4%.

"Despite recording a higher EBITDA, the profit for the period decreased 5% or RM53mil," it said.

Maxis said the factors were by an asset write-off of certain network assets amounting to RM125mil; increase in net financing costs largely due to the additional borrowings secured early this year as the group moves towards a more optimal capital structure.

Other factors were higher amortisation of devices as more smart devices were made available in the market; and offset by the lower taxation of RM48mil.

Maxis said the mobile services recorded a 3% or RM111mil increase in revenues compared to a year ago, mainly due to higher mobile internet usage and sale of devices coupled with higher wireless broadband revenues.

Total non-voice revenue as a percentage of total mobile revenue stood at 45.3%, an increase of 2.9%.

Mobile segment EBITDA increased 2% or RM51 million on the back of higher revenue offset by higher direct and operating expenses. The resultant margin was lower by 0.2 percentage point to 52.4%.

Its enterprise fixed services rose 4% or RM4mil as higher revenues were driven by new activations of services.

Its home services revenues grew RM12mil, mainly due to the home wireless Internet. However, home services EBITDA fell 48% or RM14mil on-year mainly due to higher sales and marketing and start-up expenses to drive home fibre Internet services.

KUALA LUMPUR: Naim Holdings Bhd's earnings rose 63% to RM31.24mil in the second quarter ended June 30, 2012 from RM19.16mil a year ago, boosted by its property and construction divisions.

It said on Thursday its revenue increased by 16.5% to RM120.59mil from RM103.49mil. Earnings per share were 13.19 sen compared with 8.09 sen. It declared an interim dividend of 6.0 sen a share.

For the first half ended June 30, its earnings increased by 50.7% to RM47.32mil from RM31.39mil in the previous corresponding period.

Naim Holdings attributed it to an improvement in margin for the construction segment, especially from the substantially completed projects and also improvement in performance of associates and joint ventures.

Revenue declined by 4.3% to RM214.74mil from RM224.39mil due to lower construction revenue.

"When comparing to the immediate preceding quarter of 2012, group revenue increased from RM94.1mil to RM120.6mil. The group profit before tax improved by 60% from RM23.0mil to RM36.7mil.

"The increase was mainly attributable to the property and construction divisions, which recorded higher revenue and profit in the current quarter under review," it said.

MONTREAL: Lance Armstrong, branded a drug cheat and banned from cycling by the US Anti-Doping Agency, said Wednesday he was "not afraid" of any report USADA might make to the International Cycling Union (UCI).

USADA on Friday banned the 40-year-old American for life and stripped him of his record seven Tour de France titles, but the UCI has said it wanted to see USADA's full explanation for the sanctions before acting.

The US cycling icon and cancer survivor was in Montreal for the World Cancer Congress, where he introduced himself on Wednesday morning by saying: "My name is Lance Armstrong, I'm a cancer survivor ... and yes, I won the Tour de France seven times.

"And for those who don't know what I'm talking about, I love you," he added cheerily.

Armstrong's Livestrong campaign has collected nearly $500 million for cancer research and helping people cope with the disease.

He told conference delegates that there is still "too much to be done" in the fight against cancer that "we can't be distracted," again alluding to the doping scandal.

"I won't be distracted," he said.

USADA said last Friday that Armstrong would be banned for life and his results from 1998 -- including seven Tour titles from 1999-2005 - would be expunged because of "numerous anti-doping rule violations, including his involvement in trafficking and administering doping products to others".

USADA's move followed Armstrong's own announcement that he would not seek to clear his name through independent arbitration.

Armstrong, who has vehemently denied doping during his career, has questioned USADA's authority to ban him, and the UCI demanded a full account of the agency's findings.

USADA, which said it has as many as 10 witnesses prepared to testify to Armstrong's drug use, made it clear it believes the UCI and Tour de France organizers must honor its findings under the World Anti-Doping Code. - AFP

NEW YORK: British teen Laura Robson ended the singles career of three-time US Open champion Kim Clijsters on Wednesday with an emotional 7-6 (7/4), 7-6 (7/5) victory in the second round of the US Open.

Clijsters, whose Grand Slam title haul also includes last year's Australian Open, had not lost at the US Open since falling to compatriot Justine Henin in the 2003 final on the same Arthur Ashe Stadium court.

"This feels like the perfect place to retire. I just wish it wasn't today," Clijsters said. "I gave it all and just wasn't good enough at the end of the match."

Robson snapped the Belgian's 22-match US Open win streak, smacking a tricky forehand winner on the line on the penultimate point and firing a service winner to claim the victory on her third match-point chance.

"I was just trying to play as hard as I could because I knew if I didn't Kim would dominate because she's such an aggressive player," Robson said. "I just went out there to keep getting the ball back and work my butt off."

Robson, who was age five when Clijsters first played here, will next face Chinese ninth seed Li Na, who dispatched Australia's Casey Dellacqua 6-4, 6-4, in 87 minutes.

"Thanks to Kim for being such a great role model to me for so many years," Robson said. "It was a great pleasure to finally get to play against you."

Clijsters, 29, made her final bow on the same court where she won her first Grand Slam title in 2005 and followed it up with crowns in 2009 and 2010. She had said she was leaving the sport for more time as a wife and mother.

"One of my biggest dreams came true in 2005 winning here," Clijsters said. "Every time I came back I was so inspired by the enegry that was out on this court and I played some of my best matches on this court.

"It has all been worth it. But I look forward to having the next part of my life coming up."

World No. 1 Victoria Azarenka, this year's Australian Open champion, reached the third round while defending champion Samantha Stosur and third seed Maria Sharapova, the reigning French Open champion, advanced with ease as well.

Spanish fourth seed David Ferrer, Argentine seventh seed Juan Martin Del Potro and US ninth seed John Isner won their openers on the Flushing Meadows hardcourts.

The US Open has seen nine men's comeback triumphs from two sets down in the first round, matching the record from 1989, including Serbian ninth seed Janko Tipsarevic's 4-6, 3-6, 6-2, 6-3, 6-2 victory over Frenchman Guillaume Rufin.

And Australian Lleyton Hewitt, the 2001 US Open champion, reached the second round by dispatching Germany's Tobias Kamke 4-6, 6-2, 6-1, 6-4.

British third seed Andy Murray, the reigning Olympic champion, was set to take the court in a night match at Arthur Ashe Stadium trying to become the first man into the third round.

Reigning Australian Open champion Azarenka reached the third round by defeating Belgian qualifier Kirsten Flipkens 6-2, 6-2 in only 65 minutes for her 50th match victory of the season.

"I'm proud of everything I have achieved this season," she said. "It has been a great year."

The 23-year-old from Belarus, whose 26-match win streak to begin the season was the best women's start since 1997, seeks her 13th career title and fifth trophy of the year on the Flushing Meadows hardcourts.

"I would love to play for the title," Azarenka said. "It's a long way."

Azarenka, who has reached the last eight in every Grand Slam event except the US Open, will next face Chinese 28th seed Zheng Jie, who beat Slovakian qualifier Magdalena Rybarikova 6-3, 6-1.

Australian seventh seed Stosur took an hour to beat Romanian qualifier Edina Gallovits-Hall 6-3, 6-0 to reach a third-round date with US 31st seed Varvara Lepchenko.

NEW YORK: Third seed Maria Sharapova cruised into the US Open third round Wednesday with a 6-0, 6-1 rout of hapless Spaniard Lourdes Dominguez Lino and next tackles a Stanford University psychology student.

Sharapova raced to victory over the 31-year-old Dominguez Lino in just 54 minutes with the Spaniard unable to hit a single winner in the brutally one-sided clash.

The 2006 champion next faces American college player Mallory Burdette, the world number 252 who studies psychology at Stanford and is making her Grand Slam debut.

"It's a big stage for her. She will have the home support behind her. She will be a difficult opponent," said Sharapova.

Sharapova has dropped just five games in her first two matches at the US Open as she looks to add the New York title to the French Open she captured in June.

The Russian fired 30 winners past the World No. 78 and accounted for 17 of her opponent's 24 points through unforced errors. - AFP

KUALA LUMPUR: Crowds at Dataran Merdeka, in front of City Hall, in KLCC park and other parts of the city joined in the countdown to the country's 55th Merdeka Day and, at the stroke of midnight, as a mini fireworks went off, they cheered with jubilation.

Some sounded horns, some threw confetti and some sang the national anthem Negaraku.

Many Mat Rempit contributed to the occassion by revving their engines and choking Jalan Parlimen with exhaust fumes.

By 1am Friday, most people had left Dataran Merdeka.

Police had earlier Thursday advised the public to avoid a rally by a group called Janji Demokrasi at Dataran Merdeka, saying the rally was illegal as it had not obtained a permit from police or City Hall.

Clusters of police and City Hall personnel were present at Dataran Merdeka.

Meanwhile, the Merdeka March For Jalan Sultan organised by the Jalan Sultan community and Kuala Lumpur and Selangor Chinese Assembly Hall (KLSCHA), set off on their walk from the Gospel Hall, Jalan Hang Jebat through Jalan Sultan, before reaching Dataran Merdeka after 10pm on Thursday.

Those groups are concerned about the preservation of heritage buildings jeorpadised by the MRT project.

Police stood by to prevent untoward incidents and to handle traffic to avoid congestion.

The crowd started swelling after 11pm ahead of the countdown to Merdeka Day.

Several people wearing yellow shirts or wearing yellow scarves were spotted among the crowd.

Mohamad Sabu, PAS Deputy President, was also spotted.

Meanwhile, political activist Hishamuddin Rais and others urged the crowd in front of City Hall, many chanting Janji Demokrasi, to be silent and to sit down ahead of midnight.

Police had advised the public to avoid a rally by a group called Janji Demokrasi at Dataran Merdeka, saying the rally was illegal as it had not obtained a permit from police or City Hall.

Clusters of police and City Hall personnel are present at Dataran Merdeka.

Meanwhile, the Merdeka March For Jalan Sultan organised by the Jalan Sultan community and Kuala Lumpur and Selangor Chinese Assembly Hall (KLSCHA), set off on their walk from the Gospel Hall, Jalan Hang Jebat through Jalan Sultan, before reaching Dataran Merdeka after 10pm.

Those groups are concerned about the preservation of heritage buildings jeorpadised by the MRT project.

Police are standing by to prevent untoward incidents and to handle traffic to avoid congestion.

The crowd started swelling after 11pm ahead of the countdown to Merdeka Day.

Several people wearing yellow shirts or wearing yellow scarves were spotted among the crowd.

TANGKAK: The police busted a cigarette smuggling ring and at the same time, captured a man wanted since 2006.

The 28-year-old fugitive was arrested along with his 48-year-old friendwhen police detained a lorry laden with smuggled cigarettes along Km173.5 of the North-South Expressway near here on Tuesday.

Ledang police chief Supt Harun Idris said his team spotted the 10-tonne truck at 3.35am along the highway near the Jasin exit and decided to stop it.

"We were shocked to see the truck filled with stacks of boxes containing League-brand cigarettes.

"The truck was carrying some 9,800 cartons of League cigarettes with unpaid duties totalling about RM1mil," he added.

Supt Harun said the truck driver resides in Kuala Lumpur while his accomplice, the wanted man is from Negeri Sembilan.

Both had also tested negative for drugs.

He said the duo would be charged under Section 135(1) of the Customs Act 1967 for possessing contraband items with unpaid duty.

On a separate matter, Supt Harun said police detained two men, both aged 21, and recovered a Proton Waja car which was reported stolen in Kuala Lumpur earlier this year.

The men, one from Negri Sembilan and while the other is a resident in Skudai in Johor Baru, were arrested after a highway patrol unit chased them from the Tangkak - Jasin border to the town on July 25.

He said one of them is employed as a computer technician while the other is a truck driver with three previous criminal records.

Both would be referred to the Dang Wangi police station in Kuala Lumpur where they are expected to be charged.

The district police had also succeeded in arresting three 17-year-old youths and an Indonesian foreign worker for possession of stolen motorbikes.

"Two of the youths were arrested while riding a motorcycle which had been reported stolen in Muar while the Indonesian worker for having a motorcycle with tampered engine and chassis numbers," added Supt Harun.

THE stage is set for one of the most anticipated events for this year, the Perfect Livin '12 Home & Lifestyle Exhibition that starts today.

It will be held at the Putra World Trade Centre, Kuala Lumpur until Sept 2.

To make the event a successful and meaningful one, the organiser is making sure that the booths and the ambiance are perfect.

The fourth installation of the Perfect Livin event will see about 1,000 booths and 300 exhibitors taking part to showcase their respective products and services.

It is the platform to meet people's renovation, refurbishment and decorating needs.

About 120,000 visitors are expected to attend the event which is one of the largest exhibitions of its kind.

Speaking on its preparations IStar Ideas Factory Sdn Bhd business development director Jason Yap said the concept for the event was inspired from a show in Milan, Italy.

"We travelled to an international show in Milan and derived ideas on many things including a media gallery, new registration counter, and a gift counter.

"We have an interior designer on board but the focus is for it (the exhibition) to be a place that inspires and gives people ideas. Even the stage is set with a kitchen, which has a design element to show people something different as they walk in.

"We had only two days to set up everything with a team of contractors and designers.

"There is the Hall of Elegance with more high-end stuff, so the layout, lighting and setting is different from the other halls.

"This year we are giving out special sling bags and aluminium bottles to visitors," he said.

Yap added that they want to ensure exhibitors and visitors are in a comfortable environment while maximising their time and experience.

Meanwhile, the man heading the preparations for the event, Group Thirty Three International Sdn Bhd deputy general manager Ken Low, said a lot of planning was involved in putting everything together.

He said the task was not easy as they had to see to all the exhibitors' needs.

"We are working around the clock, so we are the first ones in and the last people out. The signages and pathways setup will ensure visitors get to see everything, which will be beneficial to both the exhibitors and visitors.

"There are about 100 people working in the various sections. Even the booths set up are different for each exhibitor. We have very few standard-style booths here," he said.

Perfect Livin '12 Home & Lifestyle Exhibition, the one-stop centre for your home and lifestyle solutions, is open to the public from 10am to 9pm daily. Admission is free.

Malaysians can expect to be wowed by the myriad of innovations, contemporary home renovations and refurbishments as well as tailor-made solutions and professional advice from quality exhibitors on home decor.

There will also be a series of talks and seminars delivered by experienced speakers and industry experts.

Children below 12 years of age can participate in the Kiddy Colouring Contest, with the winners eligible for many prizes.

Visitors are also welcome to go to The Star booths, number 1382 and 1383 at the Tun Razak Hall One to subscribe to the Star Newspaper & ePaper bundle at the special rate of RM260.

Only at the booths would the special rate be extended until Sept 2, otherwise the promotion ends tomorrow (Aug 31).

Over RM25,000 worth of prizes and cash shopping vouchers can be redeemed with every subscription form.

The prizes and vouchers are sponsored by Focus Point, Sakae Sushi, and SP Setia Berhad.